Q: Good Morning
I had the misfortune of buying engh at its near high of 65$ in 2020
It is now trading around 30$ and has been for some time
Is their any chance it may reach its previous high within a reasonable time or should a person move on and put the money someplace else to work?
Thks
Marcel
I had the misfortune of buying engh at its near high of 65$ in 2020
It is now trading around 30$ and has been for some time
Is their any chance it may reach its previous high within a reasonable time or should a person move on and put the money someplace else to work?
Thks
Marcel
5i Research Answer:
ENGH will likely need to make more significant acquisitions to reaccelerate growth. Recent quarterly results have been solid, with revenue growth at 17.6% and EPS growth of 16% year-over-year. Revenue growth was well above 25% for a number of quarters mid-2019 and when the stock peaked in 2020, so it will likely need to get back to this rate of growth which is easier said than done. The company does still have strong fundamentals with good cash flows, a solid yield, and no debt on the balance sheet. While we think it is decent, we understand that patience may be waning with this one and are fine moving into another name with a more clear growth story such as DSG.